‹ BackHN Continuity

Thread

Oracle cites 'force majeure' to shield itself on controversial data center

155 points · 153 comments · simonpure

  1. tiffanyh · · focus · HN ↗
    I realize there’s a lot of hate in this thread, but I think there’s another side to this.

    Force majeure is basically there for situations where something outside a company’s control prevents them from delivering on a contract.

    I can see Oracle’s argument here. A number of states and local governments that were originally very supportive of new data centers, including places like Texas and Pennsylvania, have since started blocking or restricting new construction.

    If Oracle signed these contracts and the government later changed the rules and have stopped those projects from moving forward, it’s hard to argue they should still be held to the same delivery commitments.

    (That seems pretty close to the type of situation force majeure is meant for.)

    1. cmiles8 · · focus · HN ↗
      A hurricane wipes out your data center and someone sues you for it not being finished on time. Thats what force majeure is for.

      You made a series of bad business decisions != force majeure.

      As the AI bubble starts to pop we’re going to see a lot of creative claims as everyone rushes for the exits and the debt bomb behind all this infra lights off.

      1. red-iron-pine · · focus · HN ↗
        force majeure may not cover you even in the case of hurricanes.

        the idea is that force majeure is for things that you could not forsee, could not plan for, and could not stop even if you were aware.

        if your company sets up shop in a hurricane prone area but then fails to keep servers in other colo / cloud locations -- and then goes down cuz a hurricane inevitably hits Florida, you absolutely can get sued and lose.

Open on Hacker News to reply ↗

Unofficial Hacker News client; not affiliated with Y Combinator.